In 2020, the Group obtained a land use right in Foshan from the local authorities. Amortization of the land use right is made over the remaining term of the land use right period from the date when the land was made available for use by the Group. The land use right is summarized as follows:

 SUMMARY OF LAND USE RIGHT, NET 

The Group had recorded amortization expense of RMB637 and RMB636 for the six months ended June 30, 2025 and 2026, respectively.

In addition, the Group also pledged its land use right for the Group’s long-term borrowings (See Note 11).

The estimated future amortization expense for land use rights as of June 30, 2026 is as follows:

  SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE FOR LAND USE RIGHTS